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Chapter 7; Exercise 8

8.How will each of the following bases for hospital reimbursement affect the number of admissions, the average length of stay, the volume of services per day, and the unit cost of services (cost per service):

a.fee-for-service reimbursement

The fee for service reimbursement will inversely affect the number of admissions, the average length of stay, but will directly affect the volume of services per day, and the unit cost of services (cost per service). This is because fee for service reimbursement will act as a variable cost for hospital and hence the price for each patient would ...
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